Security System Discount - Is that rebating/gift giving?

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I was shopping for homeowner's insurance today, and an agency sent me an email that if I purchase homeowner's insurance through them, then they'll give me a discount on a Brink's home security system. Is that allowed? Doesn't that violate rebating/gift giving laws?
 
They are not rebating anything. the company selling the Brinks system is allowing a discount for the referral and the insured may get a discount for activating the system. The home security discount is usually VERY small, like $10 off your premium
 
I know that there is a small discount on your premium if you have a home security system. I'm more interested in the offer "buy with us and you can get a discount on purchasing a Brinks security system." Which isn't too different than saying "buy with us and we'll give you a gift card for $5 towards a Brinks home security system"

Is that any different than saying "buy with us and we'll give you a discount on a new car?" or "buy with us and we'll give you a discount on a steak dinner?"
 
I think you are looking too hard to find a violation of insurance law. There is no stipulation that you MUST buy the security system, there is nothing to say if you don't purchase you don't get coverage. There is nothing that says whether you purchase insurance or not you don't get the discount on the security system and there is nothing that says if you purchase insurance you get a refund whether you purchase the system or not. the offer seems to be if you purchase insurance you would get a discount on a system if you purchase that. The discount most likely cannot be converted to cash, has no cash value and benefits you only if you purchase it.
 
Interesting. I'm on the health side of the business, and wondering if we could incorporate something like this. Maybe a discount to a gym membership?
 
In health insurance you are limited to the amount of the discount (used to be $25.00 or something like that and that may only be on the medicare side) but certainly can't be converted to cash
 
It's a good point about UHC. I remember learning that an insurance company can offer an incentive to policyholders, so long as it's to every policyholder regardless of gender, age etc.

For agents, it's always a challenge. If the steak dinner is a no-no, where do you draw the line? We'll have to check with our lawyers to see what is/isn't allowed (and I wouldn't be surprised if it varies by state), but it's interesting to see what other agencies are doing.
 

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